Power: FG to bridge metering deficit

…As NERC freezes new tariff for 80% domestic consumers

By Etuka Sunday

The Federal Government said plans are ongoing to provide supplementary metering plan within six months period that would improve electricity supply services in Nigeria.

This was disclosed yesterday by the Chairman,  Nigerian Electricity Regulatory Commission (NERC), Dr. Sam Amadi  in Abuja.

Amadi while briefing newsmen on the implementation of the recently reviewed electricity tariff  said, the federal government would intervene by providing a supplementary metering plan within the six months period.

He said, “It is really about metering more consumers and government is looking forward to having supplementary support with the framework for a consumer-based supplementary metering; there will be much more clarity from government on that soon…”

He however noted NERC froze the new payment for 80percent consumers who are domestic consumers.

On the  issues of adequate consumer metering Amadi said, with the completion of the tariff review, the 11 electricity Distribution companies (Discos) are under pressure to consider metering as a matter of urgency.

He explained that the approved revised Multi Year Tariff Order (MYTO 2.1) came into effect on January 1 and a major highlight is “is a six-month freeze on the increase for residential consumers, who

constitute about 80 percent of the electricity consumers (known in the industry as R2 customer class) in the country.”

Stating the reason for the freeze Amadi said, “Let me state upfront, and for the sake of clarity that NERC has not increased tariff for residential consumers for now. While the increase will apply to other classes of consumers, it will not affect residential consumers until after June 2015.”

He said the freeze was designed primarily to protect and to promote the interests of the consumers as well as stimulate operators to serve customers better.

That the privatised electricity Distribution companies (Discos) through the incentive should improve power supply and be more responsive to the needs and complaints of their customers, especially on metering.

While stating that the six months holiday was a way of granting rest to majority consumers while the system improves, he said “the Discos are not happy about the phased approached adopted by NERC as they cannot recoup their growing and unanticipated costs that may affect them in the short run.

“Our expectation is that by the time the full MYTO 2.1 tariff begins to apply to residential consumers, both supply and service delivery would have improved significantly,” Amadi said.